Walmart is Becoming the Grocer to the Rich

(Here’s why you’ll probably join them.)

Walmart has long been a value retailer.

It’s the place shoppers have gone to make a dollar stretch just a bit further.

In fact, it is the primary value proposition Sam Walton insisted on several decades ago when he founded Walmart.

But that all may be changing.

Lately, shoppers have been struck by a growing phenomenon: 

𝘈𝘯 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘪𝘯𝘨𝘭𝘺 𝘨𝘰𝘶𝘳𝘮𝘦𝘵 𝘞𝘢𝘭𝘮𝘢𝘳𝘵.

Reddit is full of reports of Wagyu beef and Dubai Bars and even Caviar.

They’re popping up in local stores, but not showing up in National rollouts.

So what in the world is going on here?

Why are all these high-end items appearing at Walmart?

Well…

Welcome to the democratization of everything.

People are no longer fitting into shopper demographics as neatly as the once used to.  

And Walmart has figured that out.

Here is why Walmart now finds itself catering to the rich.

𝟭.  𝗗𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗶𝘀 𝘁𝗵𝗲 𝗚𝗮𝘁𝗲𝘄𝗮𝘆 𝘁𝗼 𝗗𝗼𝗺𝗶𝗻𝗮𝗻𝗰𝗲.

- Yes, the rich are now shopping at Walmart.

- But speed and convenience is part of WHY behind that phenomenon.

- Walmart may now be the World leader in grocery delivery.

𝟮.  𝗚𝗲𝗻 𝗭 𝗽𝗿𝗲𝗳𝗲𝗿𝘀 “𝗽𝗼𝘂𝗻𝗱 𝗳𝗼𝗼𝗹𝗶𝘀𝗵”.

- We’ve all heard the saying, “Penny wise, but pound foolish.”

- The idea is that some people spend their pennies wisely, but are foolishly wasteful on larger expenses.  

Well, Gen Z is flipping the script.  They don’t necessarily subscribe to that wisdom.

They will share a bedroom before saving for a house, but they’ll splurge on luxuries or experience.

There is a clear shift in values.

𝟯.  𝗦𝗼𝗰𝗶𝗮𝗹 𝗠𝗲𝗱𝗶𝗮 𝗶𝘀 𝗱𝗿𝗶𝘃𝗶𝗻𝗴 𝘄𝗶𝗱𝗲𝘀𝗽𝗿𝗲𝗮𝗱 𝗙𝗢𝗠𝗢.

- We are simply surrounded by Chanel and trips to Ibiza.

- Influencers are making these luxuries seem ‘normal’, and we’re swallowing the hook. We want it too.

- The bar of our expectations, or should we say the (Dubai) bar of our expectations, has been raised.

𝟰.  𝗪𝗮𝗹𝗺𝗮𝗿𝘁 𝗶𝘀 jealous 𝗼𝗳 ‘𝗧𝗵𝗲 𝗘𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝗦𝘁𝗼𝗿𝗲’.

• Jeff Bezos positioned Amazon to sell 𝘦𝘷𝘦𝘳𝘺𝘵𝘩𝘪𝘯𝘨 to 𝘦𝘷𝘦𝘳𝘺𝘰𝘯𝘦.

• This is why we refer to Amazon as “the Everything Store”. 

• Well, Walmart sees that and they want it.  

5.  Technology has made local merchandising possible a way it never was before.

• In the age of AI and robotics, supply chain has reached a new level of efficiency.

• We no longer have to maintain the same level of standardization across chains.

• Walmart has more consumer data than almost any company in the World.  

• They know what individual communities want, and they’re willing and able to give it to them.  

In short, Walmart sees and is positioning for all of the above.

The explosion in grocery delivery, changing habits of Gen Z, the proliferation of Social Media, and the massive market enjoyed by Amazon.

So how do I know Walmart is deliberately doing this?

Well. They’ve told us.  Over and over and over.

They released a press release well over a year ago stating that they were reaching for a wider demographic.

Walmart sees the blurring of socioeconomic expectations.

Social media has made us equal in our own eyes.

We all want everything, and we all want it now.

And so, Walmart carries $15 Dubai bars.

And Tomahawk steaks and Wagyu beef and caviar.

What do you think?

Can Walmart ditch its value retailer perception?

How about you?  Would you pay $15 for a Dubai bar?

Please topic in the comments if there’s something you want us to cover.

Also, just reach out if you need help driving velocity on Walmart Connect.

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We drive velocity in Sprouts, Whole Foods, Walmart, Target, Walgreens, CVS, Kroger, Sam's, COSTCO, and lots of other retailers.

We grow brands on Amazon.